Question: Use the data the data from excel sheet Country Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate

 Use the data the data from excel sheet Country Year 1:
Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4:
Interest Rate Year 1: Inflation Rate Year 2: Inflation Rate Year 3:
Inflation Rate Year 4: Inflation Rate Year 1: % Change in IQ
Year 2: % Change in IQ Year 3: % Change in IQ
Year 4: % Change in IQ US 1.15 1.56 3.51 5.15 1.99
2.75 3.22 3.07 0.00 0.00 0.00 0.00 Israel 6.61 4.26 3.88 5.46
-0.56 0.03 1.17 1.51 -3.88 -1.58 0.13 -0.71 Year a Yeart Year
2 Year Interest Interest Interest Rate Rate Rote 115 156 3.51 Country
Use the data the data from excel sheet
Country Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate Year 1: Inflation Rate Year 2: Inflation Rate Year 3: Inflation Rate Year 4: Inflation Rate Year 1: % Change in IQ Year 2: % Change in IQ Year 3: % Change in IQ Year 4: % Change in IQ
US 1.15 1.56 3.51 5.15 1.99 2.75 3.22 3.07 0.00 0.00 0.00 0.00
Israel 6.61 4.26 3.88 5.46 -0.56 0.03 1.17 1.51 -3.88 -1.58 0.13 -0.71

Year a Yeart Year 2 Year Interest Interest Interest Rate Rate Rote 115 156 3.51 Country 1 2 US 3 Israel Rate Year 1 Inflation Rate 5.15 1.99 5:46 0256 Year 2 Year 3: Year 4 Year 1% Year 2: Year 3% Year 4 Inflation Inflation Intation Change in Change in Chance in Chance in Rate Rate Rate 10 10 10 10 2.75 322 307 0 0 0.00 117 1:51 380 1.50 0.13 0.71 6.61 26 3.88 Question 5 1 pts What is the 4-year geometric mean of percentage change in the foreign exchange Indirect Quote (in %)? O -1.52% O -1.08% O 0.63% 0 -0.21% Question 6 1 pts What is the 4-year geometric mean of percentage change in the foreign exchange Direct Quote (in %)? O 1.55% O 5.26% O 4.88% O 6.46% Question 7 1 pts Over the 4-year period, what should have been the annual percentage change in the FX direct quote according to PPP? 2.21% O 1.96% O 2.71% O 2.96% Question 8 1 pts Over this 4-year period, did the FX Appreciate or Depreciate in "real terms"? Depreciated O Appreciated O No answer text provided. O No answer text provided. D Question 9 1 pts Over this 4-year period, what was the annual percentage uncovered rate of return from the home country's point of view (Ruh)? O 6.67% O 1.26% O 3.45% 0 4.42% Question 10 1 pts Over this 4-year period, what was the annual uncovered rate of return from the foreign country's point of view (Ruf)? O 1.26% O 6.67% O 4.42% O 3.45% Question 11 1 pts Over this 4-year period, you should have borrowed in the country and invested in the country O home; foreign O foreign home O No answer text provided. O No answer text provided. D Question 12 1 pts If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an uncovered interest rate arbitrage would have been O $176,657 $99,587 $166,142 O $243,211 Year a Yeart Year 2 Year Interest Interest Interest Rate Rate Rote 115 156 3.51 Country 1 2 US 3 Israel Rate Year 1 Inflation Rate 5.15 1.99 5:46 0256 Year 2 Year 3: Year 4 Year 1% Year 2: Year 3% Year 4 Inflation Inflation Intation Change in Change in Chance in Chance in Rate Rate Rate 10 10 10 10 2.75 322 307 0 0 0.00 117 1:51 380 1.50 0.13 0.71 6.61 26 3.88 Question 5 1 pts What is the 4-year geometric mean of percentage change in the foreign exchange Indirect Quote (in %)? O -1.52% O -1.08% O 0.63% 0 -0.21% Question 6 1 pts What is the 4-year geometric mean of percentage change in the foreign exchange Direct Quote (in %)? O 1.55% O 5.26% O 4.88% O 6.46% Question 7 1 pts Over the 4-year period, what should have been the annual percentage change in the FX direct quote according to PPP? 2.21% O 1.96% O 2.71% O 2.96% Question 8 1 pts Over this 4-year period, did the FX Appreciate or Depreciate in "real terms"? Depreciated O Appreciated O No answer text provided. O No answer text provided. D Question 9 1 pts Over this 4-year period, what was the annual percentage uncovered rate of return from the home country's point of view (Ruh)? O 6.67% O 1.26% O 3.45% 0 4.42% Question 10 1 pts Over this 4-year period, what was the annual uncovered rate of return from the foreign country's point of view (Ruf)? O 1.26% O 6.67% O 4.42% O 3.45% Question 11 1 pts Over this 4-year period, you should have borrowed in the country and invested in the country O home; foreign O foreign home O No answer text provided. O No answer text provided. D Question 12 1 pts If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an uncovered interest rate arbitrage would have been O $176,657 $99,587 $166,142 O $243,211

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